Tax hike could boost tobacco black market, retailer warns

INCREASING duty on cigarettes could increase black market sales, one retailer has said.
Paperbox proprietor Phillip Morgan said proposals to put 14p on a packet of 20 cigarettes would be counter-productive for the government, as people would seek to avoid the duty.
‘The increase is not as bad as last year. However, like the UK and Ireland, we are joining the ranks of the highest-priced cigarettes in Europe and they have the highest incidence of smuggling and illegal sales.
‘There is a point where everyone is happy to pay up to about 20% in tax but after that people try and avoid it,’ he said.
Steve Taylor (pictured), landlord of the Cock and Bull, thought most public houses would be able to absorb the costs. (from GEP)